They’re Gonna Put PE In The Movies (In China)

By WSJ Staff

Associated Press

Some of China’s top funds and investors are getting into the film and culture business in China in a bigger way as the Chinese government tries to boost China’s cultural clout.

The Chinese film industry has long envied Hollywood’s international clout and the Chinese government jealously eyes the soft-power muscle of the U.S. film industry as a potent force behind the American “brand,” so it’s no wonder the government is pumping billions of yuan into investment firms to build up its own players.

Leading the charge is BOC International Holdings Ltd. (BOC International), a subsidiary of the Bank of China, which earlier in July raised the target size of its private equity fund focused on the media industry to 20 billion yuan ($3 billion) from an initial CNY10 billion target, according to analysts and reports in the state-run China Daily. So far, the fund has raised CNY4 billion ($615.8 million) from its initial backers.

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